The Nigeria Civil Aviation Authority (NCAA) has formally challenged claims made by Allen Onyema, the Chairman of Air Peace, regarding the impact of government taxes on rising airfares. The escalating cost of domestic travel has become a point of national concern, sparking a public debate between airline operators and regulatory bodies over who is responsible for the financial burden currently placed on Nigerian travellers.
In recent public statements, Onyema suggested that a heavy tax regime and numerous government levies are the primary drivers behind the significant hike in flight tickets. He argued that these financial pressures make it difficult for domestic carriers to maintain affordable pricing while remaining operationally viable. However, the NCAA has countered this narrative, asserting that taxes represent only a small fraction of the total ticket price.
The NCAA clarified that the statutory charges collected from airlines are not as prohibitive as claimed. According to the regulator, the primary taxes involved are the five percent Contract Sales Charge (CSC) and the five percent Cargo Sales Charge, which are standard international practices intended to fund the safety and oversight functions of the aviation industry. The authority maintained that these fees are transparent and necessary for maintaining the infrastructure and regulatory standards required for safe flight operations.
Government officials pointed out that airfares are predominantly determined by market forces, including the high cost of aviation fuel (Jet A1), the scarcity of foreign exchange for aircraft maintenance, and general inflationary pressures. By attributing the hike solely to taxes, the NCAA argues that airline operators are deflecting from the complex economic realities of the industry.
The dispute comes at a time when Nigerians are grappling with record-high fares. Domestic tickets that previously cost between ₦50,000 and ₦70,000 have surged well beyond ₦100,000 for one-way economy trips. This has led to a decrease in passenger traffic on certain routes as citizens seek alternative, though often less secure, modes of transportation.
The NCAA emphasized that its role is to protect the consumer while ensuring a sustainable industry. It warned that misrepresenting tax data could lead to unnecessary friction and a loss of public trust in the aviation sector. The regulator challenged airline bosses to look inward at operational efficiencies rather than blaming the government for price adjustments driven by the broader macroeconomic climate.
To resolve the impasse, aviation stakeholders are calling for a comprehensive audit of the cost structures within the industry. While the Airline Operators of Nigeria (AON) continue to advocate for government intervention—specifically regarding the ease of accessing foreign exchange and the lowering of navigational charges—the NCAA remains firm that the current tax regime is fair.
The government has indicated a willingness to engage in dialogue, but it insists that any solution must be based on factual data rather than “unfounded claims.” For the average Nigerian traveller, the outcome of this dispute remains critical; without a resolution or significant economic shift, the sky-high prices are likely to persist, making air travel a luxury that fewer people can afford.
Strategic Analysis: Aviation and the National Economy
Nigeria’s aviation sector is a vital artery for the country’s $477 billion economy, yet it remains one of the most volatile industries. The ongoing friction between the NCAA and major carriers like Air Peace highlights a deeper systemic issue: the lack of a stable fiscal framework for essential services. When the regulator and the operators disagree on basic cost components, it signals a breakdown in the public-private partnership necessary for growth.
The potential for the sector remains immense, particularly with the push for the Single African Air Transport Market (SAATM). However, high operational costs and regulatory disputes stifle the ability of local airlines to compete regionally. To unlock Nigeria’s potential as a West African aviation hub, the government must move beyond verbal “tackling” and provide concrete policy support, such as domesticating aircraft maintenance to reduce the heavy reliance on foreign currency. Without these structural reforms, the sector will continue to lurch from one pricing crisis to another, ultimately hampering national productivity.
